Many complications in American health administration are associated with the federal system of government. In order to improve services and control waste, relationships between national and state governments should be improved. Lessons will be sought from one of the other federal systems, viz: Canada. There, many health programs are carefully organized as national provincial collaborations, with grants-in-aid. Overlapping and uncertainty are far more common in the United States than in Canada. The project will use qualitative interviewing, inspect files, and observe meetings. Information will be obtained about: the national-provincial machinery of Conferences and Advisory Committees in health; the administration of shared-cost hospitalization insurance; and long-range planning.